tv Special Report With Bret Baier FOX News December 9, 2010 6:00pm-7:00pm EST
>> on tomorrow's program, a man who i think is a george washington. you will see struggle, merit, honor, liberating strife. make sure you see tomorrow's program. this show now continues at foxnews.com/glennbeck. good night, america. you are looking live at the national christmas tree down from the white house, lit moments ago by the first family. we thought we'd take a moment to start our show with this before the news, before we deal with all of the fast-moving, quick changing developments on capitol hill. good evening, i'm bret baier and this is "special report." the tax cut deal is anything but
done. the back and forth continued today on capitol hill as chief political correspondent carl cameron shows us, president obama continued his hard sell. >> we are waiting now for the delivery, we're told, of the democrats' version of the package agreed to by president obama and republicans to extend the bush era tax cuts for two years, to extend some of the obama stimulus tax cuts, to extend unemployment benefits for a full year to create an estate tax of 35% for inherits over $5 million and 2% payroll holiday. all of this, we're told, will come tonight by senate democratic majority leader harry reid who said as much earlier today. >> we hope that we can very quickly lay down the tax bill. >> the republican leader let slip that the bill has already been drafted. >> in that regard, it's my understanding it's complete and ready. >> but no legislation surfaced throughout the day. the official cost not announced by the congressional budget
office. sources say there has been no changes to the original framework. the president again implored congress to pass the deal. >> i urge members of congress to move forward on this essential priority. >> despite passionate opposition in both parties to the process, the package and adding hundreds of billion, senate passage seems assured. behind closed doors, one angry democrat shouted, f the president, as house democrats voted almost unanimously to not even debate the president's plan. >> the tax deal between the white house and mitch mcconnell and the senate is not acceptable to the democratic caucus of the house of representatives and we will not bring it to the floor in its current form. >> democrats have already asked the white house to alter the deal and no, the answer. >> we were told yesterday by the vice president this was a take it or leave it deal. we're saying leave it. >> but the house democrats vote
was nonbinding and entirely symbolic. despise nancy pelosi's personal opposition to the deal, she and her top deputy made it clear that once in the senate acts, the house will follow. >> i don't think anybody thinks it's not going to come up. >> our intent is to obviously see what the senate does. >> that prompted optimism at the white house. >> i think at the end of the day this will get done. >> there has been progress, but not without profanity and we're waiting for the detail and cbo score, and if it comes out tonight, it's possible that there will be actual votes on the tax cut package on monday of next week. >> a lot to track. thank you very much. a repeal of the military's don't ask, don't tell law against gays openly serving in the military could have stalled before it got started. james rosen is here with details. >> good evening. senate majority leader harry reid is drawing criticism tonight from his own allies who think he poory managed the senate floor by prematurely stage ago key procedural vote this afternoon on a larger
defense spending bill that contained the provision that would repeal don't ask, don't tell. 60 votes were needed, but the democrats came up short because most gop senators held fast that the bush era tax cuts and other spending measures must be dealt with first. the irony here is that reid has the 60 bipartisan votes he needs on the core issue of repeal. just not now. prior to the vote, reid's chief republican ally all but pleaded with him to wait, but reid wasn't having it. >> the majority leader is not pursuing the path that we discussed, or at least that's my interpretation of what he's saying. i think that is so unfortunate and senator lieberman and i have been bargaining in good fate faith with the majority leader. i just want to say that i'm perplexed as to what has happened and why we're not going forward in a constructive way that would lead to success.
>> this is not any kind of legislative wrangle i'm having with my friend from maine. she has been the only person i could talk to about this legislation. this has been taking months to do this, months. and the time has gone as senator levin said to stop playing around with this. >> after the vote, senator joe liebermanerman said he plans to druce later tonight a stand alone repeal measure and recounted how it went when he told harry reid this on the senate floor. >> he said, put me down as a co-sponsor. i said, harry, we're going to ask you to bring this to a vote before the end of the lame duck session and he said, i will bring it to the active calendar under rule 14. so it ain't over 'til it's over. >> however, lieberman's stand alone measure would have to be approved by the house and well informed sources on both sides differed in guessing whether this issue is dead in this congress.
for his part, president obama tonight in a statement called the floor action disappointing and he urged the senate to revisit the issue before the lawmakers leave town. >> matter the clock. thank you. attorney general eric holder warned congress would be setting a dangerous precedent if it prohibits the transfer of guantanamo bay detainees to the u.s. for trial. the proposed ban is part of a spending measure that has been passed in the house. california democrat waters today agreed not to force a vote into an investigation into the house ethics committee. waters ethics trial was abruptly canceled two weeks ago amid accusations of improper conduct by attorneys. she wants a bipartisan task force to investigate the matter. a piece of legislation passed by the house wednesday got the cold shoulder in the senate today. molly henneberg tells us about the vote and the dream act. >> it's now passed the house. >> top senate democrat harry reid said it would be, quote, futile for the senate to vote
today on its version of the dream act. after the house passed its own bill last night by a vote of 216 to 198. it offers a path to citizenship for children of illegal immigrants who have grown up in the u.s. by making them eligible for in state college tuition or service in the military. and senator reid says the upper chamber should wait and vote on the house version. >> we have not given up on the dream act. quite the opposite. it having passed the house, gives us more energy to move forward on this most important piece of legislation. >> but first, senate democrats had to vote down their own dream act bill which had more age restrictions than the house measure with the hope of taking up the house bill next week. most republicans who oppose the dream act as amnesty for law breakers didn't want to push the matter to another day. >> i have come to the floor to strongly urge all my colleagues, democrats and republicans, to oppose cloture on the so-called
dream act. >> likely because the gop doesn't think the democrats have the votes to pass it right now, according to congressional analyst. >> republicans knew if it went to a vote, they would win. >> but cusak says reid will use the next several days to lean on his fellow democrats and maybe moderate republicans to try to get 60 filibuster proof votes. >> he won reelection in large part because of the hispanics who supported him on november 2. so he has to have this vote, but he wants to maximize how many votes he can get. >> democratic senator ben nelson of nebraska already said he intends to vote against the dream act. and other moderate democrats from conservative states are undecided. right now senator reid appears to be well short of 60 votes. bret. >> thank you. awe stairity measures in the united kingdom sparked violent clashes in england as lawmakers debated inside parliament. the young protesters made their voices heard outside.
now we see what happened. >> thousands of students angry about proposed hikes to university tuition turned the streets of the british capitol in a war zone. sticks, bottles and rocks were thrown at police. police fought back. protesters attacked various symbols of the british state. the treasury department, the supreme court, a shopping area, and the royal family. the rolls royce carrying prince charles and his wife heading to the theater was attacked by protesters. a window was smashed, paint was splashed, the car kicked. the heir to the throne and his wife were unhurt. the focus was the houses of parliament where legislators were voting on a bill which would raise maximum university fees from around $4,500 to 14,500 per year. it's all part of a definite sit cutting program by the u.k. government, the liberal democrat partners in the coalition defended the move. >> i believe that in the circumstances and they are difficult circumstances, this is
the fairest, best possible policy that we could have chosen. >> it's the first major challenge to the awe stairity moves by the government. opposition labor party leaders took up the fight. >> what really concerns me is the impact this will have on social mobility and people getting on in our country. >> after recent protests turned violent, police tried to do more to contain the rioters. still at least nine people were injured. at least 22 protesters hurt. some ten protesters arrested. >> there have been violent, unprovoked attack. >> the vote went ahead as scheduled and passed. that meant some members of the governing coalition rebelled and late tonight, police pushed the remaining protesters away from parliament, hoping to restore calm for now, at least. university tuition hikes are just the beginning of austerity efforts here. more protests should be expected at the prim and proper image of the brits takes some hits as well.
u.s. military says an american soldier was killed during operation wednesday in southern iraq. the incident is under investigation. iraqi officials say two policemen were killed during attacks on a patrol in northern baghdad. and a checkpoint outside the capitol. the founder of wikileaks remains behind bars in britain, but as national correspondent katherine tells us, the u.s. may not be first if line for legal action. >> with hackers wreaking havoc on the credit card companies and others that severed ties with wikileaks founder julian assange and his web site, eric holder was asked if the f.b.i. is investigating these cyber attacks. >> we are aware of the incidents
that you have described and we are looking into it. >> a week after he said wikileaks was threatening the security of every american, there were no specifics on the investigation or whether authorities believed private bradley manning, the low level army intelligence analyst now being held at quann co, was a soul source for all of the documents. >> have you identified all the people responsible for giving wikileaks the latest documents? >> the investigation is ongoing. >> after a closed door briefing on wikileaks, the senior republican on the house intelligence committee was skeptical that the guilty parties are out of circulation. >> i'm not at all confident that there was only one source for this information going out. >> the justice department is investigating charges, including espionage for assange at the same time the swedes want him extradited from britain on sexual molestation allegations. a lawyer for the swedish women says. >> they have been molested by
julian assange at two different times, independently from each other and then they got in contact with each other, decided to go to the police, informed the police of what happened. >> as to which country would get the first crack at assange a official hinted the u.s. would have to wait its turn because the swedish judiciary is independent. >> i don't take any orders from the swedish or americans. >> a leading homeland security expert at george washington university told fox that dealing with the wikileaks fallout is like swinging a at goats because it's so hard to identify the source and the identity of those behind the cyber attacks. it's easier to find a smoking gun than a smoking keyboard. in washington, fox news. >> the father of admitted new york city subway terrorist azazi pleaded not guilty to obstruction of justice and other charges. he entered the plea in a brooklyn court today. the younger zazi pleaded guilty to terrorism charges earlier this year related to his 2009
plot. china sent a top envoy to meet with kim jung-il two weeks after shelling from the north. the meeting comes a day after the top u.s. military officer slammed china for its hesitation in pressing the north. protesters in south korea demonstrated against kim's regime, ripping photographs of the leader and his son. we tracked drugs flowing from south america into the u.s. but first, u.s. dollars are flowing out of this country into other nations like china.
white house correspondent wendell goler tells us about the newfound cooperation. >> standing between the ceo's of xerox and ups, the president displayed what appeared to be a newly forged alliance with business to boost the u.s. economy. >> at a time when jobs are in short supply, growing our export markets is imperative and growing our exports today will create the jobs of tomorrow. >> mr. obama spoke at a meeting of his export counsel and after word, ups said the chairman of the council endorsed the tax cut deal with republicans. >> ups alone next year, as we look at our capital expenditures, with the expensing provision, we will invest more money for this proposal. >> xerox vice chairman said businesses expect a deal that will -- >> give us a little certainty about how the near term will look. >> she says businesses may react if the deal falls through. >> it would be very disappointing if it didn't past. >> bill clinton moved to the center after republican seized
congress in 1994. the phrase used was triangles haitian, finding the middle ground. aides deny president obama is following that lead. robert gibbs does say the president hopes he and a more republican congress can, quote, discuss issues like adults. likewise, an economist doesn't think we're seeing president obama 2.0. >> i don't think this is a new president obama. i think it's the same president obama dealing with new circumstances. >> the white house has said the tax cuts republicans wanted more of in the 2009 stimulus wouldn't have been as effective then. now mr. obama aides warn of failure of the deal could risk a second recession. >> if you let the middle income tax cuts expire and ordinary americans see their taxes go up 3, $4,000 starting january 1, that would be a big blow to the economy. there were several positive economic signs today. applications for jobless benefits fell last week to the second lowest level this year.
business inventories rose, which is a sign that businesses expect more demand. investors are selling more treasury bonds, a sign they expect the stock market to become a more attractive place to put their money. investment firms are saying the tax cut deal could nearly double next year's economic growth. barkley's predicting 3 1/2%. morgan stanley, 4. and the white house is making sure reporters are aware of every endorsement. >> wendell goler, thank you. fixed mortgage rates rose, hitting 4.6%. americans wealth grew 2.2% last quarter based on stock gain. stocks were mixed today. the dow lost 2 1/2. s & p 500 added 4 and three quarters. the nasdaq gained 7 1/2. triple a says the national average for a gallon of self service gasoline is almost 2.98. that's up 10 cents a gallon from a week ago. oilless prices rose 9 cents, settling at 88.37 a barrel. the country's largest labor
union is opposing the free trade agreement between the obama administration and south korea. afl-cio decision breaks with another large union, the united auto workers, which supports the pact. as worries over the national debt mount, some are getting particularly concerned about international borrowing. jim angle looks at america's debt danger, especially when it comes to china. >> whatever congress does on the current proposal to extend tax cuts and other spending, deficit hawks offer a stark warning, we must have a plan to cut federal spending at some point or face nasty consequence. >> it's kind of like we're on the titanic here in america and everybody says the bar is open, we'll just have a party the next two weeks, we're going to spend another $900 billion. >> some of the top officials warn our debt doesn't risk a financial crisis, it could lead to a national security crisis.
>> i said several times publicly. i think the biggest threat we have to our national security is our debt. >> it undermines our capacity to act in our own interests and it does constrain us where constraint may be undesirable. >> our ability to protect ourselves and project our values around the globe is ultimately built on a large economy. >> we are especially vulnerable because the u.s. now owes more than $4 trillion abroad, half of that to foreign governments and a good chunk of it to the chinese. >> if you get in a situation where you borrowed enormous sums of china and you need them to help, say, a north korean problem and what can you do? you need the next loan. you need to roll over the debt. >> one anti-deficit group is running a chilling ad over a professor explaining to students in 2030 how great empires failed. the ancient greeks, the roman empire, the british empire, and the united states. he explains how the u.s. just kept borrowing and borrowing until it lost control of its own
destiny. >> that's exactly what worries lawmakers such as tom coburn. >> if you look at history, no republic survived for as long as we have and they all failed for the same reason. they lost control of their fiscal policies long before they ever were conquered. >> no act of aggression needed. lenders like china could sit on the side lines and insist on higher interest rates before lending more. since we're borrowing 40 cents of every dollar we spend, we won't have any choice but to pay them. bret. >> more on this with the panel. thank you. new filings show the republican national committee is in debt. another $4 million, bringing their estimated debt total to more than $20 million. this comes as rumors swirl about whether chairman michael steele
doll. it says it could be misused to make child pornography. the doll is equipped with a tiny video camera and a lockett. the camera can capture up to 30 minutes of images which can be viewed on an lcd screen in the doll's back or download to do a computer. a statement from mattel, the maker of the doll, says, quote, the f.b.i. is not reporting that anything has happened. it has confirmed there have been no incidents of this doll being used as anything other than its intent. mattel officials add that despite the f.b.i. warning, the barbie video doll has been nominated for the 2011 toy of the year. iowa prisons could soon be making their own toilet paper to save taxpayer money and provide jobs to inmates. two iowa lockups are now testing a single ply tissue processed at a missouri prison. associate warden says, quote, it's not nice and fluffy, but the state says that this is an acceptable roll of toilet paper.
iowa prisons use about 900,000 rolls a year and processing it in house would save an estimated $100,000 annually. it would also create about 50 new jobs. the director of iowa's prison industries is so confident in the plan that he sees the convict-made toilet paper potentially being used elsewhere in state government. finally, a german man is facing drug possession charges after local police discovered a six foot marijuana plant decorated with christmas tree lights in his home. the french press agency says the man told officers that he had intended to add more decorations to the tree and place presents under it, according to tradition. he was not the only german to celebrate the season with cannabis. authorities detained a 21-year-old in possession of a home made advent calendar, each door filled with marijuana instead of chocolate.
gunmen blockaded a western mexican city in a second day of violence that has left at least three people dead, including a baby. correspondent william lajeunesse reports the cartels behind the killings are staying in business partly because of the u.s. >> the only way mexico will regain their security and get away from such lawless behavior is to take the money out of this whole illegal drug market and it's our money we should be ashamed of. >> it's mexico's war, but americans pay for it. >> anybody that's buying narcotics is financing that effort. >> heroin, meth, marijuana and cocaine, each of these drugs either originates from or tran sits through mexico. the u.s.-mexican border is but one hurdle for the cordelles, one step in a long but profitable journey that fuels the violence in mexico. take a single kilo of cocaine, it originates as a cocoa plant
in purrry or other crieses and the price to the farmer, $1,000 a kilo. flown to colombia, it doubles in price. from there, it travels by plane, truck or submarine to mexico where the price jumps to $10,000 a key can low. now the difficult leg. crossing over or under the u.s. border stuffed in cars, smuggled by illegal immigrants. a kilo north of the fence triples in price to $30,000. >> get additional narcotics, they get transportation sales. it gets them weapons. it gets them information. >> distribute to do street gangs in l.a. and new york where it is cut and sold to u.s. consumers by the gram, just over two pounds of pure cocaine is worth $174,000. >> we're the ones that arrogantly look at mexico and tell them, you should do more to resolve our drug problem and that's stupid. >> it's easy to point fingers and pass judgment on mexico for the violence there. but their war is our war because it's the money of 21 million
american drug users that pays to get drugs from central and south america past that fence. now drug seizures here on the border are up 40% over the last five years, but the demand in america is not going down, which is why many argue mexican blood is on our hands. william lajeunesse, fox news. >> authorities today set fire to a suburban san diego house they said was so packed with home made explosives, that they had no choice but to do a controlled burn. nearby residents were evacuated and crews built a fire wall to protect the closest homes. as the clock ticks down on this congress, lawmakers make their final push. we'll ask the fox all stars for their thoughts next.
position that the tax deal between the white house and mitch mcconnell and the senate is not acceptable to the democratic caucus of the house of representatives and we will not bring it to the floor in its current form. plain and simple. >> we were told yesterday by the vice president this was a take it or leave it deal. we're saying leave it. >> if one side takes out what they don't like and the other side takes out what they don't like, we're going to have that. that, a blank piece of paper, is not going to prevent middle class tax rates from going up. >> interesting reporting on capitol hill today as house democrats push back hard against the deal the president struck with republicans on tax cut extensions and the extension of the unemployment benefits and others in this giant compromise plan. the house democratic caucus meeting was very firey. we heard reports of cursing. also chants of no we can't, and
just say no. let's bring in our panel. steve haste, senior writer for the weekly land. associated editor of the hill, and charles krauthammer. you say this liberal revolt is real. >> yes. the word pent up frustration and negotiating malpractice were used. they cannot believe that they've been left out of this process, that vice president biden managed to secretly craft a deal with the republican leader on the senate side, a deal that the white house says is airtight and cannot be broken apart and can't be amended. there is some thinking that -- there is a few scenario, the speaker could never bring the bill up. the other one is she brings it up and breaks it through the course of the rules committee, breaks it into different parts so it gives liberal members an opportunity to vote for a different estate tax provision, things that they would like, other goody, other additional
tax, et cetera, that would then probably feel they had -- much like seeing everything example go down last week in the senate at the hands of senate democrats. the leadership would like to see this resolved by december 31. they don't want the republicans who are enjoying the side show, to be able to see this expire and go in two weeks later, come in and have a paid for unemployment insurance extension , permanent tax relief for all the brackets, et cetera. so they want to resolve this. but they are giving their members room to vent and this could go on for many days. >> i talked to senate minority leader mcconnell today and he said there is no chance that this gets restructured in any way, that this is a hard, firm compromise. we shook hands on it. this is a done deal and here is what the president just said in a radio interview moments ago.
>> my sense is that there are going to be discussions between both house and senate leadership about all the final elements of the package. keep in mind, we didn't actually write a bill. we put forward a framework. i'm confident that the framework is going to look like the one that we put forth. >> the framework is going to look like the one, steve. >> the estate tax, senator mcconnell told me that republicans should be very happy with this deal because he couldn't get through with the republican house, republican senate and a republican president the deal on estate tax that is in this compromise. now, that makes democrats livid, but that's what he says is the truth. >> probably why he's saying it. look, what i thought was interesting is there is a difference between what mitch mcconnell told you and what president obama is saying. he's talking about a framework, mcconnell is saying no, this is it. we are going to enforce this or else. he didn't say the or else, but i think it's implied. if you start tweaking it and
adding all sorts of goodies to appease people in the house, democrats in the senate who might otherwise not be in favor of it, do you get point where you start having real bolting from the republican as soon as i think that's not a crazy scenario at this point if it gets larded up with goodies, with pork, with additional tax credits, with things that people don't know are in it but will find out after it passes. >> but then it goes down. and everybody's taxes go up january 1. who is to blame? >> the republicans will blame the democrats for not holding together and that's why they i think they think it would be fine if it went down. >> charles? >> what's so interesting is how the blame game has now shifted from what we heard in the white house. up until now, both the white house and the congressional democrats have said that if it goes down and taxes are raised in january, it will be the fault of republicans and they held the
sham votes in which they supported only the middle class cuts, the republicans opposed it and it failed. so that was the story line. but if you watch gibbs today, now that the compromise is out there, what gibs has said, if you're a member of the house or senate, you don't want to go home and have your taxes raised on the 1st of january, meaning that the blame now will lie with those who kill the tax compromise, ie, the house democrats. so a democratic white house is now joining the republican story line that if the taxes are raised in january, it's the fault of the house. >> not only that. >> that is new and that is a powerful disincentive for any house democrat who wants to hold out. >> they're also joining the story line that this works with the economy, that tax cuts and tax credits and don't raise taxes on anybody works to turn the economy around, which is in the words of senator mcconnell, a win for
republicans. >> look, i think it's a win for the president because if he's going to guess reelected, he needs a stronger economy and he's getting a trillion dollars stimulus. a stimulus he could never have gotten a month after an election that was run on smaller government and less debt. he's gotten that as a result of this negotiation. i think it's a gift to him and he's very happy to have it. >> a.b., president obama and the white house announcing that president obama will meet at the white house with president clinton, former president clinton tomorrow. they call him the lefty and throw him over to capitol hill. what happens? >> well, president clinton remains one of their best negotiators. he was the best campaigner that they had. he is the most popular democrat and also arguably in some polls the most popular politician in the country. they're leaning on a lot of advice from the clinton alumni, that's for sure. they hope to be able to
triangulate in ways that clinton was able to in the 1990s. i don't think that they're comparable because i think john boehner lived through that time and is not going to lay at the feet of president obama as many opportunities as newt gingrich did. however, president clinton who still has a very strong influence among both conservative democrats and liberals alike, and i think that he might be able to help them in this. >> hearing a.b.'s description of the mood of the house today, which was rejection, neglect, upset, i think what clinton will be doing is doing therapy in there and that may be what they actually need. he will feel their pain and i think he might actually have an effect on them. >> get ready for our next panel by vote not guilty our on-line poll, go to our home page and tell us if you think a european style debt crisis will happen here in the u.s.
>> you can change the future. you have to. join citizens against government waste to stop the spending that is bankrupting america. >> we're back with the panel. what about that? let's start with steve. >> it is sort of a disturbing ad when you stop and think about it 20 years out. in many respects, we are already in crisis mode. it's just that we haven't realized it. we haven't seen the kinds of things that european countries have, whether it's england and the riots there or greece or potentially italy, spain, because our economy is so -- the structure of our economy is so great and the size of our
economy is of such a magnitude that we don't see these kind of effects. but if you look at the debt to gdp ratio, 63% right now, ratio of 63% right now, projections are it's at 90% in 2020. these are crisis type numbers. we just aren't seeing the things on the street that we're seeing in europe and elsewhere. >> if you listen to charles and we'll get down here and he'll say this, about this $900 billion package that they're debating, steve, what's the defense about that? >> the defense of that, it's not a cost to the government when if not the -- it's not the government's money in the first place. that's like me saying that i'm adding to my debt because i bought a lottery ticket and didn't win. it's not the government's money in the first place, so you can't count it as a cost. it's the taxpayers's money. so it doesn't cost the government anything to let the people keep their own money.
it's a mistake in the projection, but it's not a cost of anything. >> in that case, you can't abolish all taxes and say it's not a cost. of course it is. and the bond markets have spoken. forget about what i'm arguing. on the day that the compromise was announced, which will increase the debt over the next two years by roughly a trillion dollars, you had the largest drop in the price of bonds since the leeman collapse, meaning the markets are looking at this and saying, here is the united states that's supposedly on election day had a national consensus against expansion of government in debt and supposedly a month later had a debt commission which had a lot of support for cutting our debt and then all of a sudden, out of the blue announced an enormous stimulus that republicans and democrats are supporting and the bonds dropped. that is a loss of confidence in the ability of america to control its debt. >> here is what senator mcconnell says. he says the economy needs to
continue and that raising taxes at this time will be the worst thing, and he says, that the dealing with the debt is going to be dealing with entitlement reforms and cutting spending significantly which is what the next congress is pledging to do. but you can't do it with a faltering economy if they raise taxes. >> i agree on almost all of that and i would have let the bush tax cuts continue for a short time until you get radical tax reform as advocated by the commission. we have lower rates and eliminate loopholes. but all the other stuff, two-thirds of that trillion is outside of the bush cuts and it is completely gratuitous and i think that is the reason why the markets reacted. >> there are three persons on the debt commission who supposedly are going to vote for this tax deal, crapo, greg.
they talked dire consequences about what we're facing, yet all three of them it appears will vote for it. >> i know. it's really interesting. they spent ten months working to try to come up with a plan to reduce deficit over something like a generation and then we added another one and it -- it's a setback for whatever they're going to do. obviously they took the votes and don't have a recommendation that they can force the congress to vote on. but there is serious concern about not laying any ground work as you take a vote like this and spend more money for what's going to happen in the months to come and how serious the president and the republican and the congress will be about coming to these very difficult solutions. >> spending as a percentage of gross domestic product is typically about 18 or 19%. federal spending. it's now 25%. the problem is we're not taxing
>> holding middle class tax cuts hostage. it was used again and again by democrats to hammer republicans and then it took a bit of a turn at the white house this week. >> republicans are willing to hold hostage the middle class tax cuts so they can get a tax cut for the very, very wealthy. >> republicans are holding hostage literally, holding middle class taxpayers hostage. >> tempting not to negotiate with hostage takers, unless the hostage gets harmed. then people will very the wisdom of that strategy. in this case, the hostage was the ameran